The research investigates entry strategies into the European market and the selection of destinations for trade and investment. The study encompasses an examination of the European Union's business environment, representation of various market entry strategies and methodologies for selecting optimal trade and investment destinations. Employing SWOT analysis, the thesis evaluates the strengths, weaknesses, opportunities and threats associated with export, foreign direct investment and franchising. Furthermore, it includes detailed country case studies focusing on the examination of Danish, Spanish and Hungarian business environments. Determinants influencing destination selection for both trade and investment are explored, such as microeconomic and macroeconomic factors, which offers insights into the complex decision-making processes. The outcomes of SWOT analyses and country case studies provide practical observations that highlight crucial factors, such as corruption perceptions index, ease of doing business, global innovation index, unemployment rate, market size, foreign direct investment and other factors in order to consider how to enter the European market and select optimal destinations for trade and investment. Moreover, the thesis discusses the challenges and future prospects associated with market entry, aiming at a comprehensive overview of the topic.